Regulatory Alerts2022-04-01
Bank of Mauritius Guideline on Standardised Approach to Credit Risk
The Bank of Mauritius mandates all licensed banks to apply a uniform Standardised Approach for calculating capital adequacy requirements on credit risk, covering on- and off-balance sheet exposures alongside eligible collateral and guarantees. The framework assigns specific risk weights to claims based on external credit assessments from recognized agencies, with preferential 0% treatment extended to domestic sovereigns, central banks, and highly rated multilateral development banks. Effective 1 April 2022, the guideline establishes detailed methodologies for calculating risk-weighted amounts, defining eligible borrowers and credit risk mitigation techniques to ensure consistent capital allocation across the banking sector.
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